The technology industry could be in big trouble in future Christmases unless they spend more on R&D.

While most western companies have been pulling back on R&D as the economic crisis gnaws their bottom lines, the Chinese government and the various companies affiliated with it, have been investing more.

According to Computerworld, that could create a situation where Western companies fall behind China when it comes to technology.

One such study, released last week, predicts that by 2023 America will lose its global R&D leadership and just be a backwater with a huge army.

China is on track to overtake the US in spending on research and development in about 10 years, as federal R&D spending either declines or remains flat.

The US federal and private sector investment expected to reach $424 billion next year, a 1.2 per cent increase.

China's R&D spending is $220 billion which is an increase of 11.6 per cent over 2012.

The 2013 Global R&D Funding Forecast has been prepared by Battelle, a research and technology development organisation, and R&D Magazine.